Environmental Scanning Techniques for Business Adaptation
Businesses are integral parts of society and must stay abreast of surrounding changes to thrive. Environmental scanning is crucial for businesses to adapt and evolve effectively.
- Environmental scanning
- Business adaptation
- Society integration
- Changes awareness
- Strategic management
Uploaded on Mar 26, 2024 | 0 Views
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Presentation Transcript
Techniques of Environmental Scanning Any business which is part of the society cannot function in isolation , and it indispensable to move along with the changes taking place in the surrounding , i.e it s BUSINESS ENVIRONMENT . A business which does not adapt to these changes cannot survive in the market for a long duration of time. To understand such changes and act accordingly , it is very important to firstly study and analyse this everchanging environment , with skills and diligence. This whole process of analysing the environment is known as ENVIRONMENTAL SCANNING . There are several techniques which are used for studying the environment which can be business specific and depends on choice of the firm itself. In the next slide we will focus on various possible techniques of environment monitoring.
SWOT Analysis It is one of the most popular technique for environmental scanning. Which stands for S- strengths W- weaknesses O- opportunities T- threats The first 2 variables ( ie. Strengths & Weaknesses) are highly internal to the firm. The other 2 variables ( i.e Opportunities & Threats) are quite external to the firm. This technique helps to understand on what key areas a firm can work , and which all areas it can utilise to get an advantage. Also it is useful to take adequate steps to combat possible challenges and make best use of them.
PESTLE Analysis It stands for , P-Political E- Economic S- Social T- Technological L- Legal E- Ecological This is a detailed environmental analysis technique which keeps the external MACRO environment of business in mind. The technique studies impact of politically-economically-socially- technologically-legally & ecologically driven variables on a business. Any business studies such variables and then decides about it s own strategy for the same.
PEST Analysis This analysis is a slight narrow version of PESTLE Analysis , as it includes only the following variables: P- Political E- Economic S- Social T- Technological This technique again observes role of macro factors on a business setting.
5 Force Model of Michael Porter Porter s 5 Force Model is that which identifies and analyses 5 competitive forces that shape every industry and helps industry to determine it s weaknesses. 1. Threat of NEW ENTRANTS in the industry 2. Threat of existing SUBSTITUTE PRODUCTS 3. BARGAINING POWER of customers 4. BARGAINING POWER of SUPPLIERS 5. COMPETITION in the industry
